UK taints AWD's European results as it posts €8.9m first half loss

European advisory group AWD, parent of AWD Chase de Vere, has posted a loss of €8.9 million in its half year results, showing a 40% decline in revenue from its UK operations.

The result for the six months to June show a 44.5% decline from a profit of €20 million over the same period last year. Revenue from operations in the UK fell 40.2% to €22.3 million, but broke even nevertheless. UK adviser numbers fell to 243 from 302 and client numbers dropped 24% to 11,700.

By contrast, Switzerland’s revenue rose slightly by 2% to €35.8 million, while Austria and central Eastern Europe’s turnover dropped 44.9% to €35.6 million with adviser numbers contracting 3% to 1,418.

The results come three months after AWD announced it was commencing an efficiency and restructuring programme that was aimed at making AWD profitable and stable from 2010 onwards.

The combined programme has involved cost-cutting, phasing out its expensive sponsorship of top German football teams, restructuring the holding company and optimising the group’s back-office system.

The group also posted some positive results, with 83,600 new customers registered and a 12.1% surge in the sales of life assurance products. It also achieved an aggregate revenue of €258.3 million.

Manfred Behrens, chairman of AWD Group, said the measures which had been introduced would improve the competitive abilities of AWD.

‘The clear goal is for AWD Group to be profitable and stable from 2010 onwards. Through strong organic growth and a significant reduction in the holding group costs we have laid the foundations of a clearer, positive result,’ he said.